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Mitie expands with Argus Fire acquisition for £38 million

EditorFrank DeMatteo
Published 25/10/2024, 12:22 am
© Reuters.
MTO
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LONDON - Mitie Group plc has completed the acquisition of Argus Fire, a UK-based fire systems business, for a total consideration of £38.0 million. This strategic move bolsters Mitie's presence in the UK fire and security sector, a market known for its growth potential and increasing demand for technological and legislative compliance.

Argus Fire, with over four decades of experience, specializes in the design, installation, service, and maintenance of active fire protection systems, including sprinklers and inert gas solutions, as well as electronic fire detection and alarm systems. The company's diverse client base spans various sectors, such as education, healthcare, logistics, retail, construction, and transport, showcasing its capability to manage projects like the fire suppression systems at Battersea Power Station and installations for new logistics and data storage warehouses.

The acquisition is expected to enhance Mitie's scale and self-delivery offerings, complementing its fire and security solutions portfolio, which has been expanded through previous acquisitions like GBE Converge and RHI Industrials. It also presents opportunities for cross-selling to Mitie's established blue-chip customer base.

Argus Fire reported a revenue of £44.3 million, marking a 2% year-over-year increase, and an EBITDA of £3.8 million, which is a 25% increase from the previous year, as of the 12 months ended March 31, 2024. The acquisition was financed through Mitie's existing facilities.

Jason Towse, Managing Director of Mitie Business Services, commented on the acquisition, noting that Argus Fire's deep technical capabilities reinforce Mitie's market leadership in delivering projects, inspections, and maintenance across various sectors within the approximately £3 billion per annum UK fire and security market. He also mentioned the addition of roughly 200 Argus Fire employees to the Mitie team.

Matt Lincoln, Managing Director of Argus Fire, expressed enthusiasm about joining Mitie, highlighting the benefits of accessing Mitie's customer base, financial strength, and the prospects of being part of an expanding fire and security team.

This acquisition by Mitie is part of a broader trend in the industry towards consolidation and enhancement of technical capabilities to meet the growing requirements for 'intelligent buildings' and compliance with evolving safety legislation. The information for this report is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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